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[ D] Implementation of an EU-wide emissions trading system by means of National Allocation Plans is at the core of European environmental policy agenda.
Member States are faced with the problem of allocating their national emission budgets under the EU Burden Sharing Agreement between energy-intensive
sectors that are eligible for international emissions trading and the remaining segments of their economies that will be subject to complementary domestic
emission regulation. The country-specific segmentation of national emission budgets between trading sectors and non-trading sectors will determine the cost
efficiency of the EU emissions trading system and the gains for each Member State vis-à-vis domestic abatement policies.
We developed an interactive simulation model (see "Setting up National Allocation Plans in Europe: A Do-it-yourself Approach") where users can specify the design
of National Allocation Plans for each EU Member State and then evaluate the induced economic effects. The numerical framework is based on marginal abatement
cost curves for (emissions) trading and non-trading sectors of the EU-15 economies.
